Duke Galish LLC v. SouthCrest Bank

Although an initial foreclosure sale was invalid due to the bank's failure to comply with O.C.G.A. § 44-14-162 b, the bank cured the invalidity by conducting a second foreclosure.

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Duke Galish LLC and the guarantors of its loan together, “Duke Galish” appeal an order denying confirmation of a foreclosure sale but allowing SouthCrest Bank to conduct a resale of the property securing the loan. They also appeal an order requiring them to post a supersedeas bond. Duke Galish argues that SouthCrest did not timely confirm the operative foreclosure sale and that SouthCrest acted in bad faith. Duke Galish also argues that the trial court lacked authority to require a supersedeas bond in this case. We hold that the foreclosure Duke Galish argues was the operative foreclosure was invalid and therefore inoperative. And we hold that SouthCrest proceeded in a proper manner to correct the defect by re-foreclosing. And we hold that Duke Galish has not pointed to evidence that SouthCrest acted in bad faith. Therefore, we hold that the trial court did not err in allowing SouthCrest to resell the property. Finally, we hold that the trial court was authorized to require a supersedeas bond and that Duke Galish has not shown that the trial court abused its discretion in setting the amount. We therefore affirm. The relevant facts are undisputed. Century Security Bank lent Duke Galish $1,720,346.72, and Duke Galish executed a note and security deed. Gary Anglin, Sr., Gary Anglin Jr., Patrick Anglin and Luxomni Corporation guaranteed Duke Galish’s obligation. Duke Galish and the guarantors defaulted.

In the meantime, the original lender, Century Security Bank, went into receivership. The Federal Deposit Insurance Corporation, as receiver, assigned Duke Galish’s security deed to SouthCrest. This assignment to SouthCrest was recorded in the superior court on June 7, 2010.

Duke Galish LLC v. SouthCrest Bank

Although an initial foreclosure sale was invalid due to the bank's failure to comply with O.C.G.A. § 44-14-162 b, the bank cured the invalidity by conducting a second foreclosure.

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